Engineer: Absence of housing policy pushing prices up

GEORGE TOWN: The absence of a comprehensive state housing policy is the main cause for property prices escalating on Penang island, said Coalition for Good Governance Penang committee member Tan Seng Hai.

He said prices were soaring not because of inadequate supply as claimed by certain quarters.

Tan, who is an engineer, said there was no state policy to curb sub-sales, block sales and gimmicks like soft launches and staff purchases.

“The increase in the price of high-end properties will pull up property prices in the medium and lower end,” he said in a statement here yesterday.

He was commenting on a statement by Penang Real Estate and Housing Developers’ Association chairman Datuk Jerry Chan that property prices on the island would escalate if housing projects on hillslopes were banned as it would result in a shortage of supply.

Tan said there was an oversupply of residential units on Penang island based on figures provided by the Statistics Department and National Property Information Centre.

When contacted, Chan said the population in Penang had tripled in the last 30 years without including foreign workforce.

“Tan could be assuming that one household or one individual owns a single property. But that is usually not the case. Many of them are tenants,” he said. - The Star

Penang CM defends hill projects

GEORGE TOWN: Lim Guan Eng has defended the Penang Government's stand in treating hillslope development, saying that it has the “most stringent” guidelines for it.

The Penang Chief Minister said the present state government had not approved a single project above 250 feet (76m) high, adding that it was the only state in Malaysia which had set such a bar.

“Penang has the most stringent guidelines for hillslope safety development in the country, crafted by Oxford-trained geotechnical engineer Prof Dr Gue See Sew, a former international chairman of the coordinating committee of Apec Engineers and president of the Institute of Engineers Malaysia,” he said in a statement yesterday.

He said that half of the 38 hillslope projects approved the last two years for heights below 76m were for open space and green areas without any building structures.

Lim took a swipe at some other states, which he said allowed development on hills above the height of 76m.

“Thirty-one development projects were approved by the previous Barisan Nasional state government on hill land above 250 feet (76m) compared to none by the present Pakatan Rakyat state government,” he added.

He said according to the Penang Municipal Council, eight projects on hills above 76m were approved from 1985 to 2004, three in 2005, 10 in 2006, eight in 2007 and two between January and March 2008.

The chief minister also addressed the issue of the rise in property prices, saying that there was also a similar rise in Johor and Kuala Lumpur.

The Star had reported on Penang's various hillslope projects and the rise in property prices in the state.

A non-governmental organisation (NGO) here has called on the state government to practise sustainable development.

Citizens Awareness Chant group adviser Yan Lee said hillslope developments would effect environmentally sensitive water catchment areas like Sungai Ara.

“Such developments require proper studies and environmental impact assessment (EIA) reports. Some projects do not require an EIA because of the development size but nonetheless, one should be done if the projects threaten the environment,” he said.

Lee said the Federal Government, through the relevant ministry, had the discretion to request an EIA in such a situation, expressing hope that such discretion would be exercised in hillslope developments here.

“A crematorium project about 1km away from the Ayer Itam Dam recently received planning permission from the Penang Municipal Council. This is an example of where the EIA report is needed, though not required.” - The Star

槟市政局拨169万 美化峇都丁宜海滩

（槟城7日讯）槟岛市政局拨款169万令吉清洁美化峇都丁宜海滩。槟州地方政府委员会主席曹观友行政议员说，槟岛市政局为了清洁峇都丁宜海滩，经拨款169万令吉，物色5家沙滩清洁承包商在每天上午7时至傍晚5时，分别清洁峇都丁宜海滩5个地区，以让游客对槟岛沙滩留下美好的印象，提升槟州国际旅游形象。曹观友是于周四下午，在槟岛市政局主办的《峇都丁宜水上活动业者培训营》结业典礼上如此透露。
水上活动业者培训营
他说，槟岛市政局为了照顾游客安全，提升水上业者的汽艇驾驶技术和水上安全常识，首度举办为期4天的水上活动业者培训营。曹观友说，共有31名峇都丁宜的水上业者参与这项由槟州海事部提供培训的集训，他们都领取了每5年更新一次的小型汽艇驾驶执照和结业文凭。这些培训者每人须缴付800令吉学费上课。
设一座公共厕所
他说，除了清洁峇都丁宜海滩，槟岛市政局也在靠近金沙酒店的峇都丁宜海滩建设一座公共厕所，目前已接近90%完工，日后该公共厕所由金沙酒店当局义务清洁打理。
添设大阳伞
曹观友说，槟岛市政局也将在峇都丁宜海滩处添设8个大阳伞，每个阳伞可提供10人遮荫歇息。他说，为了照顾游客的安全，沙滩骑马活动只限定在峇都丁宜《海湾酒店》附近的一带沙滩上，那里有12只供人骑的骏马及8个马夫服务游客。光华

槟政府物色峇六拜地段 计划打造科研中心

(槟城6日讯)为与其他先进国的科研开发“并驾齐驱”，槟州政府已物色峇六拜海边地一块2点4依格地作为打造“槟州研究、创新及科学中心”（PRISM）。
槟州首长林冠英即在商贸酒店举行的与槟城科技园的驻扎公司举行对话会仪式上如是致词，他也透露已有18家中小型公司将入驻槟城科技园的中小型工业村，槟州发展机构也将为更多的中小型公司提供土地进驻，上述中小型工业园将成为槟州政府发展槟州中小型工业的三大同步方案的其中一项，其中两项方案包括成立精明中心、成立中小型工业中心。
他表示，上述进驻的18家公司涉及精确工艺、自动化、系统整合、软件、测量仪器、度身订造系统及医药器材的设计、发展及制造，不过，他也表示，槟州发展机构将制定严格条件，以便这些公司在进驻后必须在两年限期内进行建厂计划，避免一些公司霸占土地坐等地价上升以从中牟利的情况。
首长表示，槟州政府也将仿效圣佐瑟工艺中心成立一个槟城工艺中心，这将会进一步剌激青少年对科学工艺的兴趣，间接剌激槟城的电子及电器发展。- 光华

Tax change to hit Aussie properties

SYDNEY: Foreigners are likely to cut their investments in Australia's property market after recent tax changes that will hit returns, according to The trust Co which deals with managed property investments schemes.

The federal government announced in May it would increase the withholding tax for foreign investors in managed investment trusts to 15% from 7.5%. - Reuters

38 slope projects approved in last two years

GEORGE TOWN: The Penang Municipal Council (MPPP) approved applications for hillslope developments on 38 lots on the island in the last two years, MPPP president Patahiyah Ismail said.
She added that applications on 17 lots were rejected during the same period.
Patahiyah refused to disclose where the developments were located, as some cases involved legal issues and were pending in court.
She said that in approving the applications, the council referred to a hillslope development safety guide drawn up by Oxford-trained Prof Dr Gue See Sew, a former international chairman of the coordinating committee of Apec Engineers and president of the Institute of Engineers Malaysia.
“We are considering making the slope development approvals more transparent by putting them on a website,” Patahiyah told a press conference here yesterday.
Chief Minister Lim Guan Eng, who was present, stressed that the state government had not approved any development on contours above 76m-high, except for green areas like a park.
He said he was referring to developments above 76m when he said on April 20 that hillslope projects in the state were either approved or undertaken by the previous state administration.
“Of course we have approved development on slopes, but a hill by definition must be land higher than 76m,” he said.
At an earlier event yesterday, Patahiyah said she had barred MPPP councillor Dr Lim Mah Hui (who previously said that the state government had influenced the approval of a hillslope development in Sungai Ara) from issuing statements on hillslope developments because it could be sub judice. - The Star

Revise guidelines on development, council urged

GEORGE TOWN: The Penang Municipal Council should revise its guidelines on hillslope development and land usage, said Tanjung Bungah residents association member Datuk Dr Leong Yueh Kwong.
This was in view of the many landslides on the island lately, he said.
“Until the guidelines are revised, there should be a temporary halt on all hillslope projects,” said Dr Leong, the former director of the Socio-Economic & Environmental Research Institut, now known as Penang Institute.
He said the guidelines on land use should also be reviewed.
“There are many development projects in the north-east district covering areas like Paya Terubong, Air Itam, and Tanjung Bungah, which cause daily traffic congestion.
“Very soon, we will reach a point where it will not be possible to travel to Batu Ferringhi because it will take too long to get there.”
Dr Leong said it was not true that Penang did not have sufficient land.
“It's just that some of the land is not in the location that they want. It is in Balik Pulau and Seberang Prai.”
Pantai Jerejak Barisan Nasional coordinator and Penang Gerakan vice-chairman Wong Mun Hoe said the type of development supported by the state was worrying.
“It reflects a lack of planning. There's an uneven spread of construction projects on the island.”
Meanwhile, the developer of a hillslope project in Bukit Gambier, near the Universiti Sains Malaysia campus, has defended the project.
Nadayu Properties Bhd executive chairman Hamidon Abdullah said that even though the company owned 3.57ha of land, it was using only about 1.3ha.
“We identified the 76.2m line on the slope and no development will take place beyond the stipulated height. Some 1.87ha of land will be a green park.
“The project (Nadayu 290) is our first development project in Penang. We know the safety of the hillslope project,” he said. - The Star

Lure of Penang sees spike in property prices

GEORGE TOWN: The scarcity of land on Penang island and its lure as a tourist destination and a second home for foreign retirees have caused residential property prices to soar by more than 25% over the past five years.
According to real estate valuers, the prices are among the highest in Malaysia, which is why the Consumers Association of Penang claimed that only the rich could live on the island a world heritage city.
A survey by The Star revealed that condominium units in Batu Ferringhi, Tanjung Bungah and Gurney Drive which front the sea are being sold at astronomical prices, in some cases beginning with RM2mil for a 1,000 sq ft unit.

Crowded skyline: High-rise buildings dot Gurney Drive, which was once a sedate, low-density area where locals came to relax. — K.T. GOH / The Star

Even pre-war houses in the inner city for example, in Campbell Street have been snapped up mostly by non-Penangites, who have turned them into boutique hotels or simply kept them because of their architectural beauty.
The prices of the houses have rocketed from about RM500,000 in 2007 to approximately RM800,000 today an increase of about 30%.
Raine & Horne Malaysia director Michael Geh said the increase was among the steepest in the Pulau Tikus, Gurney Drive, Tanjung Tokong, and Tanjung Bungah residential neighbourhoods, which experienced a rise of over 25% in prices of condominium units.
Other areas where prices of condominium units and terrace and semi-detached houses have shot up by at least 25% are Bayan Baru, Sungai Ara, Minden Heights and Batu Maung.

The medium-range housing schemes in George Town neighbourhoods of Perak Road, MacCallum Street, Burmah Road, Jelutong Road and Sungai Pinang have not been spared.
“These have seen over a 25% increase in prices over the past five years,” Geh said.
An apartment located in such a neighbourhood cost RM180,000 in 2007 but is now RM250,000,
Geh said the rise in property prices had driven many people to buy homes in Seberang Prai, where property prices are a third of those on the island.
“But we are seeing property prices on the mainland rising as well,” he added.
An apartment in Butterworth town is now selling for RM250,000, compared to RM180,000 five years ago, while a terrace house now costs RM500,000, compared to RM300,000 in 2007.

Mushroo ming buildings : A file picture showing Penang’s Gurney Drive in 2008. Many high-rise projects have sprouted there since.

Given the rise of raw materials prices and the scarcity of land, property prices in Penang were expected to continue rising, Geh added.
Meanwhile, Penang Barisan Nasional chairman Teng Chang Yeow said there were only one or two major hillslope projects during the previous administration. Now, there were hillslope projects all over the island.
He said the present guidelines on hillslope development were adequate, but the state government should be more stringent in enforcing them. - The Star

Magna unit in RM100mil land deal

Shah Alam 20-acre acquisition to be paid by RM70mil cash and share issuance

KUALA LUMPUR: Magna Prima Bhd unit Magna Ecocity Sdn Bhd has proposed to buy 20 acres from PCM Bina Sdn Bhd, located in Section 15, Shah Alam, for RM100mil via cash and share issuance.

Magna Prima signed a conditional sale and purchase agreement with PCM Bina Sdn Bhd yesterday and stated that the RM100mil payment would be satisfied by RM70mil cash and the balance in the form of 1.11 million issuance of new ordinary shares representing a 30% interest in the enlarged share capital in Magna Ecocity or at approximately RM26.92 per Magna Ecocity share.

The cash consideration portion of the proposed land acquisition would be financed through a combination of internally generated funds and bank borrowings, of which the breakdown had yet to be determined, Magna Prima said.

The said land was located at the north-west intersection of Federal Highway, Expressway Lingkaran Tengah (ELITE) Highway and Guthrie Corridor Expressway, it said in a statement to Bursa Malaysia.

“Magna Ecocity will be responsible to undertake the overall construction and completion of the proposed development of the property. Currently the property is vacant,” it said.

Magna Prima is proposing to develop the land into a mixed residential and commercial project, comprising 180 units of 3-storey shop offices and 1,620 residential apartments.

“The gross development value of the proposed development is estimated at RM832.67mil and the total development cost is estimated to be RM624.83mil with an expected gross profit of RM207.84mil. The proposed development is expected to commence in 2013 and is estimated to be completed by 2016,” it said.

The proposed land acquisition is subject to approval and barring any unforeseen circumstances, the proposed acquisition is expected to be completed within the fourth quarter of 2012, it said. - The Star

M’sian investment in Aussie properties to grow

GEORGE TOWN: Investments from Malaysia in the Australian property market is expected to grow by about 15% this year from RM125mil in 2011.

Property Talk director Steven Cheah said in an interview that for the past two years the investment in Australia had remained flat at about RM125mil per annum.

“This was due to the stronger Australian dollar. But since March, the Australian currency had weakened slightly and so we are anticipating more property investments in Australia.

“We have also been getting a lot more enquiries since March 2012 about investing in properties in Sydney and Melbourne,” he said.

Artist impression of the Array project in Melbourne by Mirvac

Cheah said every year many Malaysians go to study in Australia, thus creating a severe shortage of property for rental.

“Many parents find that buying property for their children make more economic sense than renting. Once their children completed their education, the property can be rented as rental income or they can sell with good capital income,” he said.

According to Cheah, Melbourne was the top destination for Malaysian property investment funds.

“This is because many Malaysians have relatives who have migrated to Melbourne, where you can find a variety of Malaysian restaurants.

“According to the latest research by Australian Property Monitors, of the major capital cities, Melbourne has been the standout performer for house price growth over the last five years, with prices increasing almost 30% in just 15 months.

“Perth was the worst performing city, with the median house price unchanged in five years, which is largely a hangover from a resource-fuelled boom in prices in the early 2000,” Cheah said.

He added that Sydney and Melbourne were always voted as the top three most livable cities in Asia by ECA International, a research firm with its Asia headquarters in Hong Kong.

On Mirvac's new project in Melbourne, Cheah said the Array project, comprising 169 condominiums was next to the Yarra River.

“The project, introduced in Shanghai recently, received very positive response. Some 35 units were sold in one week,” he said.

The Array condominiums, positioned on the north-facing bank of the Yarra River, with built-up areas from 55 sq m onwards are priced from A$513,000.

“A limited number of three bedroom, deluxe Sky Residence options, priced from A$1.41mil, is also available,” Cheah said.

The project will be exclusively previewed at Hilton Kuala Lumpur on June 9 and June 10.

“Construction work on the Array project has started and is scheduled for completion in end-2014,” Cheah added. - The Star